Create Your Painting Invoice Sample for NPOs Effortlessly

Painting invoice sample for NPOs

(upbeat music) - [Toby Mathis] How do you withdraw money to use from your 501(c)(3) organization? So, this is really important. 501(c)(3) is a charity. There's about 31 different flavors of exempt organizations. This is what's called a non-profit. And, it is a business. The only difference between a traditional business and these, is that no part of the profit of this business can enure to the benefit of it's shareholders, 'cause there are none. It's just for the public as a whole. So you don't take profits out of a 501(c)(3). So since profits are off the table, then we look at how else can we get money out. You pay yourself for the service you're providing, and you provide yourself with fringe benefits. That's the way you get it out. In a perfect world, you don't need to take the money out. It's growing tax free, you get your family involved, you let this thing go on for years and years. And maybe it's given you some fringe benefits. Maybe it's providing you medical benefits. Maybe you're using your home, and it's providing you some reimbursements on a percentage of the use of your house, that's being used for an administrative office, for the nonprofit. But that's how I would get the money out. Anything else you could think of? - [Jeff Webb] No, we just need to remember that the whole purpose of the 501(c)(3) is to benefit the public or others in need. - [Toby Mathis] Mm-hmm. - [Jeff Webb] know while we can take tax advantage where we can. For example, like the salaries, paying yourself a salary, or reimbursements. We also have to make those reasonable. We can't pay ourselves one hundred thousand, two hundred thousand dollars a year for - [Toby Mathis] Mm-hmm a job that's taken ten hours a year to do, or. - [Toby Mathis] Yup. So, it's got to be reasonable. - [Jeff Webb] It's got to be reasonable compensation. - [Toby Mathis] But you can do deferred compensation. - [Jeff Webb] Yes. - [Toby Mathis] So what I do with a lot of folks that are in their big money earning hears, is they're working, but they're going to get paid when they retire. It's almost like a retirement plan. In fact, we're following some of the same rules, - [Jeff Webb] Right. - [Toby Mathis] quite often. We're just saying, hey let's make sure it's in writing. There's no real rule on it, on how it has to be. And then we're doing a non-accountable deferred compensation. I mean, we're not putting it in a separate account. So, hey I'm just going to get paid when I retire, and it's paying me for all the work I'm doing. (upbeat music)